#TBT to Some Vintage Tax Foundation Research That is Even More Important Today
June 2, 2016
Happy Thursday! I found some cool items in the Tax Foundation archives that can still teach us a lot of important lessons today. Here’s a few choice ones:
very hefty gross receipts tax this November that would burden consumers in the state with the highest rates in any state.
will severely limit consumer choice in the market for vapor products and cigars, and the Philadelphia mayor is peddling a tax proposal to Iowa Candidates Propose Corporate Income Tax Cuts (2010): My colleague Joe Henchman here comments on the Iowa gubernatorial primary, where then-candidate, and today-governor Terry Branstad (R) proposed cutting the corporate income tax rate from 12 percent to 6 percent.
Nationwide, states’ reliance on the corporate income tax has been falling over time, from a high of 9.5% in 1977 to about 5 percent today. The nightmarish administrative complexity associated with apportioning income from multistate companies to the various states, combined with a mess of inconsistent apportionment and nexus rules designed by each state to maximize tax revenue, results in a tax that raises very little revenue while imposing enormous costs on the economy.
Iowa has been a leader in other tax reforms and has a chance to be a leader here as well.
This year, we released a comprehensive review of Iowa’s tax system with a menu of tax reform options for state officials to consider. Among them are options for lowering the state’s 12 percent corporate income tax to as low as 3.9 percent. It’s getting a lot of great coverage from local media here, here, and a must-read op-ed by my colleague Jared Walczak here!